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INKSURE Technologies

Brand Protection & Authentication Solutions

Confidential Information

INKSURE Technologies

Provider of covert, machine readable brand security solutions

The verification process is based on proprietary authenticators thatprovide instant, reliable, forensic-quality results

INKSURE’s taggant technology is applied to tens of billions of consumeritems and high-value documents annually

Established in 1999; U.S. public corporation (INKS.OB) - SEC regulated

Corporate Headquarters in NYC; Global R&D Center at the Science Parkin Rehovot, Israel

Brand Protection Solutions

Covert Machine Readable Technology

Optical taggants that are not visible to the human eye

Mixed with the brand owner’s own Inks & varnishes

Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet

Authenticated by a handheld, battery operated, portable reader

The reader gives a positive response – not subject to HumanInterpretation

Many custom security formulations available

Enhances overt authentication Security

No visible response to UV excitation

No IR up converters

No false accepts

How Does It Work?

Each item is invisibly marked with INKSURE’s SmartInk duringstandard printing production

Although visually identical to regular ink or varnish, SmartInkincludes a covert taggant code

The code is customer/application exclusive

INKSURE’s range of proprietary readers are used toconclusively authenticate products and documents by detectingelectro-optical material behavior, identifying the code andproviding on-the-spot pass/reject indication

SmartInk Covert Applications

SmartInk can be applied to almost any substrate – paper,plastic, foils, laminate, thermal transfer ribbon etc.

SmartInk utilizes standard printing processes & infrastructuresuch as offset, inkjet etc.

“If it can be colored, coated, printed, or packaged, INKSUREcan protect it”

SignaSure Handled Readers

A sophisticated optical authentication reader, analyzing complexspectral signatures

Each reader can store up to 10 codes to detect different markedapplications

Forensic Level Authentication- up to 75 data points

Configured for each customer/application

Simple & intuitive user interface; light weight, ergonomic design

Clear audible and visual confirmation/alert within seconds

Rechargeable batteries; USB connectivity

PocketSure Handled Readers

A new, pocket-size reader for field authentication

Size: 5.5” x 1.1”

Weight:2.5 ounces

Highly accurate 10 point data count

Lower-cost for high volume distribution

Warehouses

Law Enforcement

Retail Locations

Multiple codes in memory

Audio tone and visual (red/green LED) only,no LCD screen

Replaceable batteries, no charging circuits

SortSure – In Line Process Control

Continuous hands free feedback

Effective cost monitoring capability

Data collection for future QA reference or evidence

CodeSure – Barcode & Taggant Reader

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Detection of overt, covert and mixedsymbols printed utilizing tagged anduntagged inks

Will read 1D 2D barcodes, OCR etc.

Onboard database

Track & Trace data is stored locally(USB/Micro SD attachments) for quicklookup (eliminates the need for connectivityto a remote server)

Target Market

INKSURE’s Targeted Verticals

INKSURE is focused on four distinct verticals:

Security Integrators (government & security products)

Hologram Manufacturers

Label Manufacturers

Security Printers

In each vertical INKSURE has successful large scaleimplementations & reference customers

Security Integrator – Case Study

The Ukraine Tax Stamp (2008 – Current)

Ukraine Population: 50M

Tobaccos & Alcohol consumption – several billions items annually

Security Integrator – EDAPS Corporation (Ukraine Based)

Introduction of INKSURE’s covert taggants + distribution of >1,300readers to tax inspectors

Successful integration resulted in an immediate increase of ~30% intax revenues

EDAPS distributed a case study detailing the project success

The Secretary General of the World Customs Organizationssingled out the Ukrainian tax stamp project

SmartInk can be applied to a Tax Stamp via any of the following:

Hotstamp hologram tagged by SmartInk

Background design by using SmartInk Intaglio or clear overcoat for a yes/noauthentication

 SmartInk Inkjet for yes/no authentication of serial numbering

 SmartInk Sequential for group level tracking (manufacturer,

 designated markets, etc.)

 Multiple reading configurations:

 Field Forensic SignaSure for authorized customs personnel

 Handheld PocketSure for supply chain authentication

 High speed SortSure with counting capabilities for production

Security Integrator – Tax Stamp Applications

Hologram Manufacturer– Success Case

European Partner (Italy)

Insertion of INKSURE’s taggants into hologram base foils

Producing over one million meters of tagged base foils annually

Producing several billions of hotstamp holograms annually

Tagged holograms are very durable and can provide accuratecovert results for several years

INKSURE’s team works closely with manufacturer to ensure aseamless & consistent process

Label Manufacturer– Success Case

US based partner – confidential

Insertion of INKSURE’s taggants into label base foils

Labels are applied to electronic products & accessories

Producing several billions labels annually

Label are being distributed globally (mainly to china)

Security Printer – Banknote Project

A Central Bank (OECD member)

Addition of INKSURE’s taggant to a specific area in thebanknote

Taggant and & designated area – known only to the centralbanks

Successful integration at the Security Printer’s facility inSwitzerland

INKSURE implemented SortSure to automatically verify largequantities of banknotes at the Central Banks safes

Banknote rollout is expected during 2011

INKSURE Brand Protection - Summary

Highly experienced and execution-oriented management team

Solutions protect tens of billions of consumer items and high-value documents annually

Proven large scale implementations of tax stamps, hologramsand security labels projects

Strong & long term relations with local integrators especially inEastern & Central Europe